India relaxes fiscal deficit, cuts taxes to spur growth – Saudi Gazette

India relaxes fiscal deficit, cuts taxes to spur growth – Saudi Gazette

MUMBAI, India - India relaxed its fiscal deficit target Saturday, raising spending and slashing taxes as it seeks to attract foreign investment and increase consumption in the wake of a prolonged economic slowdown.. Finance Minister Nirmala Sitharaman announced the changes as part of the country's annual budget in parliament, a day after official data showed that Asia's third-largest economy grew five percent last year, its slowest expansion since the 2008 global financial crisis.. India's fiscal deficit target for the current financial year is now 3.8 percent of GDP from an earlier 3.3 percent, she said, adding it would edge down to 3.5 percent next year.. And the government assures taxpayers they will not be harassed," she said in her second budget speech since Modi won a second term by a landslide last May..